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EXHIBIT 3 Judson Brown, City of Santa Ana October 27, 2022 Habitat Washington Avenue — Preliminary Financial Gap Analysis Page 7 ESTIMATED AVAILABLE REVENUE The Project's estimated total available revenue is equal to the sum of the Affordable Sale Price revenue and the Project's additional revenue. KMA estimates the total available revenue as follows: Affordable Sales Price Revenue $1,053,000 Habitat Financial Assistance $1,001,000 Estimated Available Revenue $2,054,000 Financial Gap Calculation The financial gap is estimated by deducting the Project's available revenue from the Project's total development costs. Based on the preceding analysis, KMA estimates the Project's financial gap as follows: Total Development Costs $4,290,000 (Less) Total Available Revenue (2,054,000) Estimated Financial Gap $2,236,000 Per Unit $372,700 As shown in the preceding table, KMA estimates the Project's financial gap at $2.24 million. Comparatively, Habitat estimates the Project's financial gap at $2.20 million. This equates to a $36,000, or less than 2% differential, which is primarily due the difference in affordable sales price calculations between KMA and Habitat. Per Habitat's assistance request, the City proposes to provide up to $2.20 million in Inclusionary Housing Funds to the Project. Since this amount is less than the financial gap identified by KMA, it is therefore KMA's conclusion that the proposed assistance package will not provide a windfall profit to Habitat. City Council 21 — 15 12WI15/2020 19090.018.026